A global pandemic didn’t slow the demand for luxury homes in Texas in 2020.
The number of homes in the state that sold for $1 million or more from November 2019 to October 2020 jumped by 23.5% , according to an annual report from the Texas Realtors industry association.
The 2020 Texas Luxury Home Sales Report, which examines housing statistics for luxury homes in the Austin, Dallas-Fort Worth, Houston and San Antonio metropolitan areas, determined buyers closed on 6,347 luxury homes totaling over $10.3 billion in sales during the 12-month period ending in November. Up 23.8% from the previous year, the total accounted for 8.8% of the state’s total home sales volume.
“One reason we’ve seen strong growth in luxury home sales despite the pandemic is that mortgage rates are so low,” Marvin Jolly, chairman Texas Realtors, said in a release. “Buyers of high-end properties are finding they can buy more for their money, particularly when compared to many real estate markets in New York, California and other pricier areas.”
Texas Realtors reported the median price for luxury homes in Texas for the first 10 months of 2020 was $1.36 million, 0.7% less than the previous year. The average price per square foot for luxury homes increased 3.5% to $361, which was considerably more than the $139 average price per square foot for all residential Texas homes in 2020.
From January to October 2020, Texas Realtors reported that luxury homes in Texas spent an average of 86 days on the market, a decrease of one day from the same time frame in 2019. On average, luxury homes spend more time on the market than lower-priced homes, Texas Realtors said.
The Houston metropolitan area saw buyers close on 1,849 luxury homes totaling $2.9 billion during the year-long period ending in November -- a 7.8 percent year-over-year increase, Texas Realtors reported.
More than 5,000 properties priced at $1 million or more were listed in the area between November 2019 and October 2020 and, as of October 2020, the area market had a 10.3-month supply of luxury homes.
“Buyers in the market for homes priced at $1 million and above will continue to have a good selection in most areas of Texas,” Jolly said.